Wednesday 4 December 2024 – A UK-funded cargo tracking system has been praised in a flagship report about digital innovation in trade facilitation.
The Regional Electronic Cargo Tracking System (RECTS) has been highlighted in the flagship report of TradeMark Africa’s Trade Development Forum 2024. The Trade Facilitation Report was unveiled by the former Prime Minister of Ethiopia, His Excellency Hailemariam Desalegn Boshe, in Kigali, Rwanda.
The RECTS system has been praised for significantly improving security, efficiency and reducing costs, by consolidating and enhancing the monitoring and security of transit cargo on the Northern Corridor from Mombasa through to Bujumbura – benefitting Burundi, Kenya, Rwanda, and Uganda – and is soon to benefit the DRC.
For example, the tracking system has cut the transit time of cargo trucks from Mombasa to Kampala from 21 days to just 4-5 days, whilst the Uganda Revenue Authority reported that the tracking system has saved over USD 1 million in physical escort costs for more than 20,000 consignments.
The web-based system works by providing end to-end tracking of goods from Mombasa Port to destinations across East Africa, reinforcing regional integration, and safeguarding revenue collection. By ensuring that goods travel exactly where they are supposed to, RECTS has helped participating countries foster a more transparent, efficient, and competitive market environment.
The projects have also had impacts on the lives of hardworking Kenyans. RECTS employs rapid response teams along the Northern Corridor to address any tampering or detours in real time, ensuring the security of goods in transit. It has helped ensure driver safety buy deterring the previously common theft of goods, when drivers would often be assaulted.
In Kenya, other digital trade enhancements funded by the UK are benefitting the country and have also been featured in the report. The Integrated Cargo Management System, or ICMS, has reduced clearance time for air freight from an average of 2 days to 2-3 hours as of December 2021, and has enabled the Kenya Revenue Authority to increase customs revenue and other taxes on international trade and transactions collection by 17.9% from 2018 to 2023.
Neil Wigan, British High Commissioner to Kenya, said:
The UK is proud to have helped deliver this exciting innovation in digital trade that is growing the economy of Kenya by overcoming barriers to the swift and efficient trade that East Africa deserves. This is only made possible through partnerships with the Government of Kenya and TradeMark Africa – we go far in East Africa when we go together.
NOTES TO EDITORS
Link to the Trade Facilitation Report in full – including detail on the RECTS
Images of RECTS in action
Images from the Africa Trade Development Forum
About the Africa Trade Development Forum
With our shared goals for a prosperous Africa in mind, TradeMark Africa re-established the Africa Trade Development Forum, a gathering aimed at propelling advancements in trade facilitation and shaping a strategic voice for trade across the continent. The Government of Rwanda co-hosted the event in Kigali from December 2 to 3, 2024. Building on the successes of previous fora held in 2011, 2012, 2014, 2018, and 2019, the platform brought together Heads of States and senior Government Officials, Development Partners, Academicians, Multilateral Organisations and Private Sector leaders and innovators to discuss and make decisions that will achieve our vision of a thriving Africa. Please visit the Africa Trade Development Forum for more information.
About TradeMark Africa
TradeMark Africa (TMA) is a leading African Aid-for-Trade organisation, founded in 2010 with the mission to grow intra-African trade and increase Africa’s share in global trade, while helping make trade more pro-poor and environmentally sustainable. TMA operates on a not-for-profit basis and is funded by the Bill and Melinda Gates Foundation, Canada, Denmark, the European Union, Finland, France, Ireland, the Mastercard Foundation, the Netherlands, Norway, the United Kingdom, and the United States of America. TMA works closely with regional and continental organisations, national Governments, the private sector, and civil society.
Since its inception, TMA has delivered substantial gains for trade and regional economic integration in East Africa and the Horn of Africa, including a reduction of 16.5% in cargo transit times on the Northern Corridor from Mombasa to Bujumbura, and a reduction of an average of 70% in the time taken to cross selected one stop border posts. TMA works in 14 countries across East and West Africa, Southern Africa, and the Horn.
In 2022, TMA set up a catalytic finance company – Trade Catalyst Africa – that will pilot commercially viable projects for creating trade infrastructure (both physical and digital) as well as increasing access to Trade Finance for Small and Medium Enterprises (SMEs).
Both TCA’s and TMA’s headquarters are in Nairobi, Kenya. Offices are in: EAC (East Africa Community) Secretariat – Arusha, Burundi, the Democratic Republic of Congo, Djibouti, Ethiopia, Ghana, Malawi, Rwanda, Somaliland, Tanzania, and Uganda, with operations in Mozambique, South Sudan, and Zambia. For more information, please visit www.trademarkafrica.com.
UK-Kenya Strategic Partnership
The UK-Kenya strategic partnership joint statement can be found here.